US Secretary of State Mike Pompeo will arrive in India today and will meet his new counterpart S Jaishankar on Wednesday, both of them will discuss on the rising tensions over US-INDIA trade war and they will also lay the ground for a meeting between US President Donald Trump and Prime Minister Narendra Modi at the G20 meeting in Japan.
The trade tensions between both the countries are to a all time high, as both the countries are trying to promote domestic manufacturing. PM Modi has been wooing investors under his ‘Make in India’ campaign, while Mr. Trump want US manufacturing to return home under his ‘Make America Great Again’ campaign.
India in retaliation this month imposed higher tariffs on 28 US products, including almonds, apples and walnuts, following the US withdrawal of certain trade privileges for India. Last year also India had announced tariffs in retaliation to higher US import duties on steel and aluminium.
Trump publicly called India “tariff king”, The Trump administration has also asked India to remove price caps on imported US medical devices, open up its dairy market and cut duties on IT products.
After Walmart-Flipkart deal, India made tighter e-commerce foreign investment rules, which forced Amazon.com Inc and Walmart Inc to rework their business strategies in the country. Walmart last year invested $16 billion in Indian online retailer Flipkart.
While the major businesses will hope for a constructive meeting between US and India as the businesses at both the sides are facing the heat.